Confidence shock creates dislocation

Research evidence excerpt

Confidence shock creates dislocation

Vietnam | Consumer Products

PNJ EquityJulyResearch6, 2026

TARGET | ESTIMATE CHANGEConfidence shock creates dislocation

We view the PNJ Lab incident as a confidence crisis rather than a structural RATING BUY

impairment of PNJ's franchise. We cut earnings forecasts and raise our risk PRICE VND58,700.00^

premium, but current valuation of 8x FY26E PE and 1.6x PB is still attractive PRICE TARGET | % TO PT VND73,940.00

for a market leader generating >20% ROE. As confidence and governance (VND90,950.00) | +26% VND84,666.71 -

measures improve, we see scope for a meaningful recovery. 52W HIGH-LOW VND54,666.69

FLOAT (%) | ADV MM (USD) 82.9% | 2.37

Market confidence shaken. The arrest of a former PNJ Lab director for alleged involvement MARKET CAP VND30.0T | $1.2B

in a diamond smuggling and certificate forgery ring has triggered a confidence shock across

Vietnam’s diamond market. As certification is central to verifying authenticity and quality, the TICKER PNJ VN

compromise of one of the country’s largest appraisal bodies raises broader concerns over ^Priornoted.trading day's closing price unless otherwise

industry standards. With PNJ Lab estimated to handle ~70% of domestic diamond appraisals,

the issue risks undermining trust in certified diamonds rather than being viewed as an isolated

fraud case. Reports indicate weaker secondary-market liquidity, steep resale discounts and FY (Dec) CHANGE TO JEFe JEF vs CONS

smaller jewellers scaling back buybacks or operations. 2026 2027 2026 2027

REV NA NA NA NA

Management moving quickly to restore confidence. Management stressed that PNJ Lab EPS +3% -3% NA NA

operates under a separate management structure and that the Board has launched an

immediate governance and compliance review.